Methacton school board sticks to Act 1 tax cap

WORCESTER — The Methacton school board voted 6-1 Tuesday to approve the district’s final budget of $99,557,372 for 2014-2015. The budget includes a real estate tax rate of 27.9 mills, an increase of 2.1 percent from last year.

The millage rate equates to $2,790 in property taxes per year for each $100,000 of taxable assessed value, or $57 more than last year, according to district figures. The 2.1 percent increase adheres to the cap set for the district by Pennsylvania’s Act 1. The district applied for and received an exception authorizing a larger increase, but in the end, the rise stayed within the state limit.

Newly elected board member Greg Pelicano abstained from the vote, while board member Jim Phillips voted against the budget, saying the time had come for a zero percent tax increase.

“This is the 34th year we have raised taxes, with an average increase of 2.8 percent, 2.1 this year,” Phillips said. “I would like to give the taxpayers a one-year break to say we are thinking about you.”

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Phillips went on to say that the district cannot go on giving salary increases and expect the budget to be manageable, noting that 80 percent of the budget is comprised of salary and benefits.

“I don’t like removing programs, I don’t like outsourcing personnel,” Phillips said. “Whether its teachers, support staff…we have to make concessions.”

“We’re in control of 80 percent of our budget when we negotiate contracts,” Phillips said, citing a 1.5 percent increase on teacher’s salaries and 2 percent increase on support staff salaries which he said drastically affect the budget. “You can’t make up for that.”

Board Vice President Herb Rothe placed the blame on the state Legislature for the tax increases necessary to balance the budget.

“Way back when we first started this I was really hoping for zero percent tax increase,” Rothe said. “I really hope this is the last time I have to vote for a school budget before the state budget comes out.”

There is still a $1 billion hole in the state budget that needs to be filled, and it is imperative for elected officials to follow the law and pass their budgets in accordance with those laws, he added.

“I find that very disheartening as a school board director,” he said.

Board member Brenda Hackett said despite the tax increase, the district is in a stronger position moving forward because of its commitment to a long-term plan that looks beyond just next year’s finances. However, she too said that without changes in the legislature pertaining to pensions and other matters, the situation will remain unmanageable for all Pennsylvania school districts.

In other business Tuesday, the board also approved the solicitor-reviewed contract between the district and the transportation company First Student Inc., for all district transportation services.

The contract specifies a 10-year term for the agreement, which will begin July 1 and continue until June 30, 2024, with two clauses to terminate the contract should First Student fail to adhere to the stipulations of the contract and one so that Methacton can terminate the contract at will.

Randy Williams, the First Student representative who helped give all of the presentation to the board at previous meetings, updated the board on the transition process for hiring all of the personnel whose contracts were terminated.

According to Williams, 103 of the 120 drivers have been interviewed and passed initial screenings, and process of hiring those 103 will continue as soon as their background checks and clearances come back.

Williams detailed the various meetings held to provide the transportation staff with information on the procedures moving forward with First Student and also announced the company has chosen Charlie Hoffman as the location manager for First Student’s site in the Methacton School District.